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Monday, 15 October 2018

US ban on Iran has led domestic oil companies to other exporters

US ban on Iran has led domestic oil companies to other exporters

After the US ban on Iran, domestic oil companies have made substantial contracts with other exporters like Saudi Arabia and Iraq to compensate the impact on crude oil imports. Senior officials gave this information on Monday. India had procured 226 million tonnes of crude oil from Iran in 2017-18. For the current financial year, roughly 250 million tonnes of crude oil has been traded from Iran.

After US sanctions have been imposed by November, there will be obstacles in buying crude oil from Iran, thereby threatening to create crisis in countries like India dependent on imports.

A senior official of Indian Oil said, "We have alternate deals with all contractual suppliers. These alternative deals can be invoiced at any time throughout the year and these deals are enough to compensate for any reduction in the purchase of crude oil from Iran.

The official said that even if the import of crude oil from Iran completely stops, the country's refining companies will not have any problems. Although India is not going to stop buying crude oil from its traditional friend country Iran. Indian Oil and Mangalore Refineries have already made a deal to purchase 1.25 million tonnes of crude oil from Iran in November. The idea is to continue to pay Iran only in rupees after the American ban was imposed.